The roiling credit markets have led yet another hedge fund to suspend redemptions. London-based Wharton Asset Management said today it would halt redemptions in its flagship Y2K Finance fund until at least December, “due to current market turbulence.”

The fund, which focuses on asset-backed securities investments, was down 30% in June and July. Another Wharton fund, Trio Finance—which specializes in real estate ABS—is down 46% this year, though the firm has not suspended redemptions from the Trio fund.

The precipitous fall is especially dramatic for Wharton, which had been the best-performing non-U.S. fixed-income hedge fund over the three years to September 2006.